Canadian Gas Company Appeals Denial of Expansion of Liquefied Petroleum Gas Terminal in Ferndale, Washington

AltaGas, the gas company that unlawfully expanded a liquefied petroleum gas (“LPG”) terminal at Cherry Point in Ferndale, has filed an appeal of a decision by the Whatcom County Hearing Examiner rejecting a development permit for the facility’s expansion. The Hearing Examiner sided with six local environmental groups, represented by Earthjustice, and ordered the County to redo a flawed analysis of the impacts of the expansion.

The decision, issued in late March, was an important victory for the Salish Sea and communities surrounding the Ferndale terminal.  The Examiner found that the County erred by relying on flawed studies and information submitted by AltaGas. The company’s information, accepted by the County, concluded that 31 unpermitted construction projects – carried out by the company during a moratorium on expansions — did not increase the terminal’s ability to handle more LPG. This led to the faulty conclusion that there were no environmental impacts, despite obvious safety and environmental risks posed by the expansion. The Hearing Examiner disagreed with the company and the County and ordered revised studies.

Instead of embarking on the new analysis, ALA Energy filed an appeal this week in Skagit County Superior Court. Since the decision is headed to court on appeal, the local environmental groups filed a narrow appeal of their own seeking to revisit a part of the ruling that restricts the geographic scope of the new study.

Over the next few months, both parties will submit their arguments to the court, followed by a hearing.

The groups represented by Earthjustice are Friends of the San Juans, Whatcom Environmental Council, Evergreen Islands, Washington Conservation Action, Sierra Club, and RE Sources.

Following are statements by the local environmental groups and Earthjustice:

“We are disappointed AltaGas has chosen to keep fighting this rather than work with the County and the community on finding solutions,” said Eva Schulte, Executive Director, Friends of the San Juans. “We think that there is a way for this terminal to co-exist with the people and wildlife of the Salish Sea, but it requires the parties to work together, instead of trying to overturn the Hearing Examiner’s commonsense decision in court.”

“For years, AltaGas has been telling us that they are committed to protecting the environment and working with the community. With this appeal, those promises ring hollow,” said Jan Hasselman, a Senior Attorney with Earthjustice, which represents the organizations. “What is the company trying to hide by avoiding further study?”

Background

AltaGas bought the Ferndale terminal in 2014 with the goal of expanding its ability to import, store, and export propane and butane.

Between 2016 and 2021, the Whatcom County Council enacted temporary moratoriums designed specifically to prevent major fossil fuel expansion at Cherry Point terminals, including AltaGas’ ALA Energy Ferndale Terminal. The intent was to prevent the area from transforming into a high-volume import and export hub that would increase climate, environmental and safety threats.

Despite this moratorium, AltaGas advanced projects at the terminal without disclosing their true intent to expand its operations. AltaGas built 31 of these projects without seeking permits. These expansions also led to hundreds of tons of illegal air emissions.